In Depth: Foreign Fund Managers Suffer Baptism of Fire in China

Pedestrians walk past BlackRock Inc.’s headquarters in New York City on June 11. Photo: VCG

* Most of the private funds set up as wholly owned foreign enterprises entered the market just as it was headed south and are now showing losses

* Other roadblocks to the funds’ success are regulatory limits on how the companies can raise money for the funds and invest the proceeds

(Shanghai) — Wu Jinglian, one of China’s most influential pro-market economists, once described the country’s stock markets as “worse than a casino.” But more and more foreign fund managers are betting they can rake in winnings.